2017年02月28日

We would have 50 new buyers in the couch category, and one new buyer in each of the other 50 categories. The 50 new buyers in the couch category will substantially increase the likelihood of a filled transaction within its category, while the additional one participant in any of the remaining categories barely increases its chances to fill a transaction in their respective areas EndPoint Backup. If we take this example to scale and we assume: Marketing budget of $500,000 A liquidity threshold per category of 250,000 participants Only the couch category would reach liquidity. And even if we were to invest $1 million in marketing, only the couch category would reach liquidity because all the other areas would only reach 10,000 participants each. And the same would happen until the invested amount goes above $25 million.

strategy would lead to diminishing marginal returns from a liquidity standpoint reenex facial: Again, the best way to solve this issue is to align the marketing strategy to the category concentration. In other words, allocate the majority of the marketing investment to the most predominant category (which in our example would be the couch category). The liquidity chart in that case would look like this: This is, of course, an extreme example. A more realistic case would have several concentrated categories and a long tail of dozens of others.

To illustrate this, let’s assume 30 percent of the buyers want to buy a couch, 20 percent a chair, 10 percent a table and the remaining 40 percent are scattered across the 40 other outstanding categories. This time, the liquidity chart would look like this (which is more realistic): Density, a balanced demand and supply and category concentration are crucial drivers of marketplace liquidity. To maximize your return on marketing investment, you need to align your marketing and liquidity strategies. To monitor the evolution of your liquidity, you need to track your second-degree KPIs you beauty hard sellc. VCs should also dig into these three principles when evaluating a marketplace investment opportunity.